 Therefore, an employer only has to pay these benefits if the employer has a policy to pay such benefits or a contract with you to pay these benefits.An employer must follow its own rules for these kinds of payments.Most states, in fact, do not require unused vacation balances to be paid out upon termination, and very few states have formal rules protecting employees from changes in the vacation policy; however, all states must comply with federal labor laws such as the Family Medical Leave Act.